UK HOUSING MARKET HAS TURNED A CORNER
House prices rose 0.4pc in June compared to the previous month, pushing the increase on a year earlier to 3.1pc, up from 2.9pc in May, according to the Office for National Statistics (ONS).
That meant that for a third month in a row the pace of price increases has outstripped headline price inflation across the economy, which came in at 2.9pc in June. As a result, house prices are no longer flat or falling in "real" terms, but have started to grow even when inflation has been taken into account.
The pace of yearly price rises was driven by London (8.1pc), the West Midlands (3.1pc) and the South East (2.9pc), the ONS said. Stripping out London and the South East, UK house prices rose just 1pc in the 12 months to June.
The housing market has "turned a corner", partly because of the Help to Buy scheme, the government has claimed. Figures show that the housing stimulus programme in England has attracted 10,000 successful applications since it was launched in April. The Equity Loan Scheme effectively underwrites 95% mortgages and allows people buying newly built homes to proceed with a deposit of just 5%.
The government has set aside money to fund 73,000 applications to the Equity Loan Scheme. A five-year interest-free loan from the government provides another 20% of the price and a mortgage covers the rest. It will be extended to all homes in the UK costing less than £600,000 from next year.
Communities Secretary Eric Pickles said - "This government's package of measures to boost the housing market is working, with house building and housing supply on the up. The tough decisions we've taken to tackle the deficit are now delivering a sustainable increase in housing and providing real help to hard-working people”.
Increased movement in the Real Estate market sees a surge in the requirement for both Residential and Commercial Property Lawyers, as evidenced by the top 5 legal recruitment job boards, advertising over 4000 property related jobs, from paralegal to partner. Long may it continue.